Short Term Trading Member Forum

[Toppcats]

Hello all - At this point we are in another wave 3 downwave. Whether this is wave v of 1 or a 5 wave C retracement the immediate trend is to the downside. Update of the spx chart previously posted.

http://stockcharts.com/def/servlet/SC.web?c=$SPX,uu[h,a]daclyyay[p][vc60][iUa12,26,9!Li14,5]&pre...

The result following the stochastic crossing here is obvious and consistent with prior crossings.

Keep in mind that wave-iii was shorter than wave-i (not true for the dow, however), therefore wave-v should be comparatively small. I am playing this short only until I see the end of current wave (1-v-iii).

I think many e-wavers are considering the current wave as concluding wave 1 (wave 1-v). We should see a signifcant rally off of the low after this wave plays out. Problem is, that if correct, then the retracement peak which follows would likely represent the 40 week Hurst cycle high (left translated) with new lows to follow. There are other possible scenarios, but this one appears most likely at this time.

I went full short as discussed in prior post with futures and options. As these are now well in the black, to protect profit I will look to close these quickly as this current downwave concludes. Playing the last downwave (fifth wave) here would be very risky; a better option would likely be to play the expected retracement. Next fibo time window near Memorial Day.

Gold - breakdown continues. Longterm TL now broken. I am looking for higher weakness in the physical gold right now - to close the existing gap between the strength of the miner stocks and the physical gold. Back up the truck time, though, will be coming relatively soon!

Regards,
Gary